Bitcoin is the futures
By Yann Quelenn
Prices did not collapse: indeed they rose. What crashed was the CBOE website, which could not handle the volume as Bitcoin futures debuted there yesterday. Bitcoin is becoming ever more mainstream; smart money now has the tools to get into it.
Still, the weekend was one of strong volatility. Fears are that institutions will short Bitcoin, and that futures will artificially increase the Bitcoin supply. Moreover, settlement still is in cash, not in Bitcoin. Nonetheless, Bitcoin price has not reached its top yet. Within the next couple of years, we may see insane prices.
Euro to climb in busy bank week
By Arnaud Masset
This Tuesday-Wednesday the US Federal Reserve will meet, followed by a European Central Bank conclave on Thursday. EUR/USD fell more than 1% last week as the USD extended gains across the board. The single currency started the week on a firmer footing with EUR/USD climbing back to 1.18. We maintain our medium and long-term bullish view on the pair with the 1.25 target as a first objective.
At the Fed’s last meeting this year, the prime rate is expected to rise by 0.25%. Investors will focus on the updated forecast for economic growth and interest rates. According to the last forecast in September, Fed members are expecting three rate hikes in 2018. If that number is reduced, the dovish message would translate into a USD sell-off.
The ECB’s last meeting of 2017 will be a non-event. Attention will focus on the press conference, which we expect to have a neutral, cautious tone to avoid strengthening the euro.